Excess withdrawl from capital of llp by a company - deposit
This query is : Resolved
18 April 2014
4) Will excess withdrawal of capital from LLP by a company (partner in the LLP) be treated as deposit or not?
18 April 2014
Meaning of drawings – Drawing means withdrawal of money from the capital by a partner from partnership firm for personal purposes
Drawings in relation to a company:
Company being an artificial person generally withdraws money from the partnership as disinvestment.
Excess withdrawal of capital by a company from LLP:
According to Rule 2 (c) of Acceptance of Deposits Rules, “Deposits includes any receipt of money by way of deposits or loan or in any other form, by a company unless otherwise exempted”
Thus the withdrawal from LLP (in excess of capital) may be treated as deposits and the same can be treated as deposits in “other forms”.
For further queries & clarifications visit www.thecompanydesk.webatu.com
Or write us at thecompanydesk@gmail.com
The Company Law Desk
Drawings in relation to a company:
Company being an artificial person generally withdraws money from the partnership as disinvestment.
Excess withdrawal of capital by a company from LLP:
According to Rule 2 (c) of Acceptance of Deposits Rules, “Deposits includes any receipt of money by way of deposits or loan or in any other form, by a company unless otherwise exempted”
Thus the withdrawal from LLP (in excess of capital) may be treated as deposits and the same can be treated as deposits in “other forms”.
For further queries & clarifications visit www.thecompanydesk.webatu.com
Or write us at thecompanydesk@gmail.com
The Company Law Desk
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS on Consultancy- Non DTAA
- Depreciation of fixed assets- coop housing society in mumbai
- Reopen of assessment proceeding
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- EPF FULL & FINAL RULES IN 2026
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Reprocessing of rectification order AY 2025-26
- FTS Taxable under 115A
- Rental income gst and it purpose
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
